[UNITED STATES] Asian markets and US stock futures fell on Monday, while the dollar fell, as concerns about tariffs and President Donald Trump's public criticism of the Federal Reserve impacted mood, sending gold prices to a new high.
Trump unleashed a series of attacks on Fed Chair Jerome Powell on Thursday, with his staff considering whether to dismiss Powell, a move that would have serious consequences for the central bank's independence and global markets.
Historically, the Fed has operated independently of political influence, a cornerstone of its credibility since its founding in 1913. Trump’s unprecedented criticism—calling the central bank’s rate hikes “crazy” and “loco”—has raised alarms among economists who warn that undermining the Fed’s autonomy could destabilize long-term market confidence. The last time a U.S. president openly challenged the Fed’s authority was in the 1960s, when Lyndon B. Johnson reportedly pressured then-Chair William McChesney Martin to keep rates low, contributing to inflationary pressures in the following decade.
Most global financial markets were closed Friday, with several still shuttered in observance of Easter Monday. In early trading, S&P 500 futures slipped 0.64%, while Nasdaq futures edged down 0.53%. Across Asia, Japan’s Nikkei shed 1%, while South Korea’s benchmark held steady.
“Markets are already on edge due to intensifying geopolitical tensions, and now there’s added anxiety over potential interference by Trump in the Federal Reserve,” said Charu Chanana, chief investment strategist at Saxo in Singapore. “Any perceived erosion of the Fed’s independence could complicate monetary policy just as investors seek stability in a volatile global environment.”
These uncertainties have spilled over into bond markets, where traditional safe-haven assets like U.S. Treasuries are facing renewed scrutiny. Analysts highlight a decline in foreign appetite for U.S. debt, as some central banks pivot toward euro-denominated assets and gold amid a widening U.S. budget deficit and aggressive tariff measures.
Financial markets have been rattled by Trump’s tariff policies, which have sparked sharp selloffs in Treasuries and the dollar, challenging the long-standing view of U.S. assets as a safe haven. That sentiment has been further undermined by Trump’s public criticism of the Fed, leading to a broad weakening of the dollar.
The euro climbed to a three-year high, while the yen surged to levels not seen in seven months. The Swiss franc also gained 0.6% against the dollar, approaching a 10-year peak.
Emerging market currencies have taken advantage of the dollar’s decline, with the Indian rupee and Brazilian real registering gains. However, analysts warn that sustained volatility in the greenback could strain countries burdened with dollar-denominated debt, particularly across Latin America and Africa, where borrowing costs could spike if the dollar rebounds.
Chicago Fed President Austan Goolsbee voiced concerns on Sunday, expressing hope that the central bank’s ability to set policy free from political interference remains intact.
Meanwhile, the yield on the U.S. 10-year Treasury note rose three basis points to 4.358% during early trading in Asia.
With the U.S. earnings season getting underway, investor attention is turning to quarterly results from tech bellwethers including Alphabet, Intel, and Tesla. All seven megacap tech stocks—dubbed the "Magnificent Seven"—have taken a hit in 2025, with Alphabet down roughly 20% and Tesla plunging 40%.
Tech firms face increasing pressure as tariffs on Chinese components threaten to erode margins. Semiconductor leaders like Intel and Nvidia, deeply reliant on global supply chains, could see production disruptions if trade tensions escalate. Some firms are already exploring relocation strategies to countries like Vietnam and Mexico, though such moves come with steep costs and logistical hurdles.
Both companies and investors are bracing for continued shifts in the tariff landscape, as the Trump administration negotiates with key trading partners. While some of the more punitive tariffs have been paused, the U.S. remains embroiled in a trade standoff with China.
Trump struck a cautiously optimistic tone on Friday, noting that behind-the-scenes discussions with Beijing were progressing. However, China’s ambassador to the U.S. responded that mutual respect was a prerequisite for any meaningful talks.
Trade analysts suggest Beijing may be biding its time until after the U.S. elections before committing to substantial concessions. In the meantime, China has been quietly deepening economic ties with the European Union and Southeast Asia in a bid to soften the blow of U.S. tariffs. Still, with China’s economy slowing, pressure is mounting on both sides to reach a resolution—though neither wants to appear to blink first.
In commodities, gold surged more than 1% to a record high of $3,370.17 per ounce, pushing its year-to-date gains to 26%. The precious metal has repeatedly hit new highs in 2025, bolstered by strong safe-haven demand amid ongoing global uncertainty.
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